Applied Digital finished the second 50‑MW phase of its Polaris Forge 1 AI factory in Ellendale, North Dakota, bringing the building to its full 100‑MW critical IT load. The milestone marks the first of three contracted buildings under the company’s 400‑MW lease with CoreWeave and confirms that the facility is now fully energized and ready for tenant fit‑out.
The completion adds an estimated $11 billion of long‑term revenue to Applied Digital’s books, reflecting the full value of the CoreWeave lease. Despite this upside, the company’s financials remain under pressure: operating margins are negative, with a trailing‑12‑month margin of –122 % and gross margins near zero for the most recent quarter. Debt levels are significant, underscoring the need for continued cost discipline as the company scales its high‑density AI infrastructure.
Strategically, the milestone underscores Applied Digital’s competitive edge in purpose‑built, waterless‑cooling data centers that can be delivered at accelerated speeds. The company’s focus on rapid construction and specialized cooling aligns with the growing demand for AI workloads, positioning it to capture a larger share of the expanding market while maintaining a differentiated operational model.
Todd Gale, Chief Development Officer, said the project “demonstrates the engineering discipline and execution reliability that we bring to every build.” The statement highlights the company’s confidence in its ability to deliver complex, high‑density facilities on schedule, a key factor for attracting and retaining large AI tenants such as CoreWeave.
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